Taleb: Every Human Should Short US Treasuries

February 4th, 2010 by alyx · No Comments · fail

Avast, Nassim Taleb declares Treasuries to be aboard the failboat, thinking “Well, it’s safer than Europe” won’t bolster things on this side of the pond very long:

Feb. 4 (Bloomberg) — Nassim Nicholas Taleb, author of “The Black Swan,” said “every single human being” should bet U.S. Treasury bonds will decline, citing the policies of Federal Reserve Chairman Ben S. Bernanke and the Obama administration.

It’s “a no brainer” to sell short Treasuries, Taleb, a principal at Universa Investments LP in Santa Monica, California, said at a conference in Moscow today. “Every single human being should have that trade.”

Taleb said investors should bet on a rise in long-term U.S. Treasury yields, which move inversely to prices, as long as Bernanke and White House economic adviser Lawrence Summers are in office, without being more specific.

Cats – particularly fatcats – everywhere were indignant to be excluded from this investment advice, and I’ve overheard rumblings that the feline population might actually be planning to declare war on black swans as a form of protest.

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